Foreclosure laws are created to prevent banks from being able to steal a property and to safeguard homeowners from fraudulent collection actions, right? Actually, all laws are developed to defend the young children, save the environment, and assist Major Street while not rewarding Wall Street — but how can we explain all the laws that specifically harm borrowers?

As an example, so-called rapidly track foreclosures and nonjudicial foreclosure procedures deny due process rights to homeowners who may have fallen behind on their mortgages or are victims of predatory mortgage servicing. But without having an actual trial, or even the right to respond to a bank’s foreclosure, lenders can just steal houses with no adverse consequences.

This type of foreclosure is allowed in 30 states along with the Washington, DC region, taking the correct of a trial away from a lot more than half of the country. The worst part? Judges have in fact ruled that such foreclosure procedures do not violate Constitutional rights, in spite of the truth that in these situations, the burden of proof is on borrowers to show how a foreclosure is invalid.

Another loophole in all these laws developed to defend the little guy against the huge Wall Street banks is that, in all states besides California, banks have no obligation to try and work out an agreement that would quit foreclosure. In fact, banks are allowed to proceed directly to the foreclosure process right after the first missed payment.

Thus, the negotiation procedure is almost entirely determined and run by mortgage lenders and servicers. They do not need to administer adequate loss mitigation departments or present any solutions to foreclosure besides homeowners defending their properties in court, if they are allowed and can afford to do so.

Furthermore, in all but three states, the lender can begin piling on outrageous default, foreclosure, and late fees as soon as the first payment is late. These enormous fees are normally directly responsible for most homeowners who experience a temporary monetary setback being unable to afford to pay tens of thousands of dollars to reinstate a loan that’s only behind by a number of months.

It really is routine for a bank, inside the space of six months or less, to charge a single borrower tens of thousands of dollars in late fees and interest, while its attorneys charge yet another ten thousand. By the time the foreclosure paperwork is finally filed in court, it truly is nearly impossible for the homeowners to pay back what they owe even if they wish to.

Therefore, foreclosure laws about the country allow banks to loot borrowers’ loan accounts by piling on outrageous fees, refuse to negotiate with homeowners for a mortgage modification or other agreement, and then pursue a fast track foreclosure that denies individuals basic due process rights. And all of it’s legal and sanctioned by the courts.

Is it any wonder that a lot of homeowners come across it tough to think that “the law is on their side” in the case of a foreclosure? Is it any wonder numerous borrowers do not even bother to respond to a foreclosure lawsuit or show up at the court hearing ? Is it any wonder a lot of discover it needed to take out their frustration at the bank directly on the home itself?